House “One Big Beautiful Bill”: A Patchwork of Permanent and Fleeting Tax Policies 36


The House Ways and Means Committee has introduced its “One Big Beautiful Bill,” a tax package aiming to solidify numerous temporary and evolving provisions from the 2017 Tax Cuts and Jobs Act (TCJA). This initiative seeks to provide taxpayers with long-term clarity on significant aspects of both individual and international tax frameworks. However, the proposed legislation also introduces a collection of new temporary measures and phaseouts, setting the stage for future congressional deliberations. Let’s delve into the timeline of these new, short-lived tax policies embedded within the House bill.

Individual Tax Provisions: Temporary Relief Ending with Trump’s Term

The bill proposes several temporary tax reductions for individuals, applicable from the 2025 through 2028 tax years. These provisions are slated to expire after President Trump’s current term concludes. Key changes include:

  • Increased Child Tax Credit: The maximum child tax credit would rise by $500.
  • Enhanced Standard Deduction: Single filers would see a $1,000 increase, head of household filers a $1,500 increase, and joint filers a $2,000 increase in their standard deduction.
  • New Deductions: The bill introduces deductions for tip income, the “half” portion of time-and-a-half overtime pay, senior citizens, auto loan interest, and charitable contributions for non-itemizers.
  • Scholarship Granting Organization Credit: A new tax credit for contributions to these organizations would be available from 2026 to 2029.
  • “MAGA Accounts” Pilot Program: Newborns in tax years 2025 through 2028 would receive a one-time $1,000 deposit into a new tax-preferred savings vehicle.
  • Opportunity Zones Extension: The program allowing the designation of new qualifying zones would be extended from January 1, 2027, through December 31, 2033.

Critics argue that these new deductions complicate the tax code, targeting specific taxpayer groups or economic activities and imposing additional administrative burdens on businesses and the Internal Revenue Service. While the temporary nature of these policies is generally seen as unfavorable, some suggest it might be beneficial if these provisions indeed expire and do not become permanent fixtures. The “MAGA accounts” pilot program is also criticized for adding another layer to the already complex landscape of tax-preferred savings vehicles.

Expiring Individual Tax Provisions Under the House’s “One Big Beautiful Bill”

Provision Expiration Date
Increase the maximum child tax credit by $500 to $2,500 After the end of 2028
Pilot program of one-time $1,000 credit deposited into “MAGA Accounts” for newborns After the end of 2028
Standard deduction enhancement of $1,000 for single filers, $1,500 for head of household filers, and $2,000 for joint filers After the end of 2028
Bonus standard deduction enhancement for seniors of $4,000 per senior After the end of 2028
Above-the-line deduction for tips in customarily and traditionally tipped industries, excluding highly compensated employees After the end of 2028
Above-the-line deduction for overtime pay, excluding highly compensated employees After the end of 2028
Above-the-line deduction for auto loan interest for vehicles with final assembly in the United States, phasing out when modified adjusted gross income exceeds $100,000 single ($200,000 joint) After the end of 2028
Above-the-line deduction of $150 single ($300 joint) for charitable contributions of non-itemizers After the end of 2028
Tax credit for contributions to scholarship granting organizations After the end of 2029
Opportunity Zones After the end of 2033

Business Tax Provisions: Temporary Expensing and Interest Deduction Changes

The bill includes three provisions offering full, immediate expensing for specific business investments:

  • Machinery and equipment
  • Domestic research and development
  • Structures in manufacturing, agriculture, and extraction industries

While making these cost recovery provisions permanent could have significantly boosted economic growth, their temporary nature is expected to limit their long-term impact on investment decisions. Businesses typically make long-term investment plans, and a temporary tax benefit coupled with future uncertainty diminishes the intended incentive.

Another business provision loosens the limitation on business net interest deductions, reverting to a 30 percent limit based on a broader measure of business income, consistent with pre-2022 rules. Previous Tax Foundation modeling suggested that a revenue-neutral approach could involve adopting the broader income measure used by other countries while lowering the percentage limit.

Expiring Business Tax Provisions Under the House’s “One Big Beautiful Bill”

Provision Expiration Date
100 percent bonus depreciation for short-lived property After the end of 2029
Immediate expensing for domestic research and development (R&D) After the end of 2029
Business net interest deduction based on EBITDA After the end of 2029
100 percent bonus depreciation allowance for certain structures Construction before Jan. 1, 2029, placed in service by Jan. 1, 2033

Inflation Reduction Act Credits: Setting the Stage for Future Extensions

Changes to the Inflation Reduction Act (IRA) credits within the bill introduce phaseouts in later years. This approach, as discussed by a Tax Foundation colleague, raises concerns about potential future extensions by Congress. Many existing green energy tax credits have persisted due to repeated short-term extensions before the IRA provided longer durations. This strategy risks turning the current energy tax credits back into “extenders”—policies that outlive their initial expiration dates.

IRA Phaseouts Under the House’s “One Big Beautiful Bill”

Provision Expiration Date
Hydrogen Production Credit, Previously Owned Clean Vehicle Credit, Qualified Commercial Clean Vehicle Credit, Alternative Fuel Vehicle Refueling Property Credit, Energy Efficient Home Improvement Credit, Residential Clean Energy Credit, New Energy-Efficient Home Credit Repeal after 2025
Clean Vehicle Credit Repeal after 2025; retain in limited form for EVs from new production lines in 2026
Advanced Manufacturing Production Credit Phase out for wind energy components after 2027, phase out for all other components after 2031
Zero Emission Nuclear Production Credit, Clean Electricity Investment Credit, Clean Electricity Production Credit Phase out starting after 2028, finished before 2032
Section 48 Energy Property Credit (Heat Pumps) Phase out starting in 2030, finished before 2032
Clean Fuel Production Credit Extended through 2031

Conclusion: Prioritizing Simplicity and Stability Over Temporary Measures

While the effort to make some tax provisions permanent is commendable, the proliferation of new temporary policies and scheduled phaseouts in the “One Big Beautiful Bill” significantly limits its positive impact on economic growth, certainty, and stability. As lawmakers continue their deliberations, a shift towards simpler and more stable tax policies, rather than temporary and complex measures, would be a more beneficial approach.


Leave a comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

36 thoughts on “House “One Big Beautiful Bill”: A Patchwork of Permanent and Fleeting Tax Policies

  • Cristal Cline

    I’m often to blogging and i really appreciate your content. The article has actually peaks my interest. I’m going to bookmark your web site and maintain checking for brand spanking new information.

  • 1wiN

    Официальный Telegram канал 1win Casinо. Казинo и ставки от 1вин. Фриспины, актуальное зеркало официального сайта 1 win. Регистрируйся в ван вин, соверши вход в один вин, получай бонус используя промокод и начните играть на реальные деньги.
    https://t.me/s/Official_1win_kanal/5031

  • 1wiN

    Официальный Telegram канал 1win Casinо. Казинo и ставки от 1вин. Фриспины, актуальное зеркало официального сайта 1 win. Регистрируйся в ван вин, соверши вход в один вин, получай бонус используя промокод и начните играть на реальные деньги.
    https://t.me/s/Official_1win_kanal/2921

  • 1win

    Официальный Telegram канал 1win Casinо. Казинo и ставки от 1вин. Фриспины, актуальное зеркало официального сайта 1 win. Регистрируйся в ван вин, соверши вход в один вин, получай бонус используя промокод и начните играть на реальные деньги.
    https://t.me/s/Official_1win_kanal/2431

  • 1 WIN

    Официальный Telegram канал 1win Casinо. Казинo и ставки от 1вин. Фриспины, актуальное зеркало официального сайта 1 win. Регистрируйся в ван вин, соверши вход в один вин, получай бонус используя промокод и начните играть на реальные деньги.
    https://t.me/s/Official_1win_kanal/131

  • toto macau

    Today, I went to the beach front with my children. I found a sea shell and gave it to my 4 year old daughter and said “You can hear the ocean if you put this to your ear.” She put the shell to her ear and screamed. There was a hermit crab inside and it pinched her ear. She never wants to go back! LoL I know this is totally off topic but I had to tell someone!

  • live toto macau

    Simply wish to say your article is as amazing. The clearness to your post is simply great and i can suppose you’re an expert in this subject. Fine along with your permission allow me to grab your RSS feed to keep up to date with drawing close post. Thanks a million and please keep up the rewarding work.

  • banca multifuncional

    obviously like your website but you need to check the spelling on several of your posts. Many of them are rife with spelling issues and I find it very troublesome to tell the truth nevertheless I’ll definitely come back again.

  • forexreSib

    [url=https://earnforexrebates.com/]Forex Rebates[/url] are a powerful way for traders to maximize their earnings from everyday trading. With EarnForexRebates.com you gain access to a professional rebate system that provides you with cashback without changing your strategy. Unlike complicated promotions, our service is clear and consistent. The system works thanks to our agreements with global brokerage firms, which allows us to ensure reliable and timely payouts. Every trade you make can generate a rebate, whether you win or lose. EarnForexRebates.com works with your existing broker accounts, meaning that you continue trading exactly as you do now, while we add cashback to your results. Clients can check our transparent comparison of broker payouts to see exactly how much they will receive for every lot traded. This level of clarity makes it easy for traders to calculate their true trading expenses. By joining EarnForexRebates.com, traders not only enjoy passive extra income, but also benefit from cooperation with trusted brokers. The rebate system is a great solution for anyone active in the Forex market, because it doesn’t demand changes in strategy. Many users report that their trading performance feels more rewarding, simply by using our system regularly. With fast payouts, your rebate arrives without delay. If you are looking for a new way to boost profits, EarnForexRebates.com is the solution that combines straightforward service and financial benefits. Sign up today and unlock the cashback potential of your strategy.
    https://earnforexrebates.com/

  • Cerrajeros Sevilla

    Hi there, just became alert to your blog through Google, and found that it is really informative. I am going to watch out for brussels. I will appreciate if you continue this in future. A lot of people will be benefited from your writing. Cheers!

  • ExpertBup

    [url=https://magicampat.ru/]Задать вопрос гадалке онлайн[/url] сегодня стало невероятно просто благодаря современным сервисам, которые позволяют каждому пользователю получить консультацию в реальном времени прямо из дома. Если раньше для того, чтобы получить предсказание приходилось ехать в другой город или искать знакомых, то теперь достаточно лишь зайти на платформу и написать интересующую вас тему. Многие виртуальные предсказатели предлагают разные форматы общения: от переписки до видеоконсультации, что делает процесс максимально комфортным для каждого. Обращаясь к гадалке через интернет, вы можете получить разное толкование: кто-то работает с картами Таро, кто-то предпочитает астрологию, а есть и те, кто использует древние ритуалы и техники интуитивного чтения. Самое главное, что вы можете получить ответ у гадалки о том, что действительно волнует именно вас: будь то семейная жизнь, карьера, будущее или энергетика. В отличие от стандартных статей и советов, которые можно найти в интернете, онлайн гадалка дает индивидуальное толкование, ориентируясь на вашу ситуацию. Многие пользователи отмечают, что возможность задать вопрос гадалке онлайн бесплатно помогает им сначала проверить сервис, а затем при необходимости перейти к более глубоким и развернутым консультациям. Подобный формат удобен еще и тем, что вам не нужно тратить время на дорогу и организацию встречи — вы получаете возможность прикоснуться к предсказаниям за считанные минуты. Задавая вопрос гадалке через интернет, вы сами выбираете формат, продолжительность и глубину консультации. Кому-то достаточно пары слов, а кому-то требуется подробный разбор ситуации с рекомендациями. Гадалки онлайн умеют не только давать советы, но и направлять в правильное русло, помогать человеку найти силы и уверенность. Сегодня такие сервисы становятся все более популярными, так как соединяют древние знания и современные технологии, позволяя человеку чувствовать себя соприкасающимся с тайнами судьбы прямо через экран. Если вы давно хотели попробовать гадание, но не знали, с чего начать, возможность спросить совет у гадалки онлайн в любой момент — это отличный шанс. Попробуйте и убедитесь сами, насколько правдивыми могут быть такие консультации, и как они помогут вам в принятии решений.
    https://magicampat.ru/

  • Newcastle Painter

    Write more, thats all I have to say. Literally, it seems as though you relied on the video to make your point. You obviously know what youre talking about, why throw away your intelligence on just posting videos to your weblog when you could be giving us something enlightening to read?

  • click here

    Thanks for discussing your ideas on this blog. Also, a delusion regarding the financial institutions intentions when talking about foreclosures is that the loan company will not have my installments. There is a degree of time that this bank will require payments from time to time. If you are also deep in the hole, they will commonly call that you pay the actual payment 100 . However, that doesn’t mean that they will not take any sort of payments at all. When you and the loan company can manage to work anything out, a foreclosure method may halt. However, if you ever continue to pass up payments under the new program, the foreclosure process can pick up exactly where it was left off.